Looks like you really know much about mesh instancing, I'm impressed. Why don't you write JCL a email or visit him so you can show him what he is doing wrong, because he clearly must be stupid like hell if model instancing is such a performance booster but the internal tests showed that it wasn't that effective.
I'm pretty sure that he will give you some money for your efforts wink

Shitlord by trade and passion. Graphics programmer at Laminar Research.
I write blog posts at feresignum.com